Reserve Bank of Zimbabwe starts clearing RioZim debt

RIOZIM says its operations are “nearing capacity” after the Reserve Bank of Zimbabwe (RBZ) started clearing its debt with the miner for gold it delivered to the central bank.

Back in July, RioZim warned its shareholders, in a cautionary statement, that it had been forced to stop production due to outstanding payments of US$2,5 million and ZWL$65,5 million for gold deliveries.

The company also said the then fixed exchange rate, which the Government later discarded in June, was hitting on its operations as the miner was not deriving full value for its production. But in its latest update to shareholders, RioZim said talks for the payment of the debt with the RBZ have been fruitful.

“The RBZ and Fidelity have been making part payments to the company with a view to clearing outstanding amounts and have assured the company of timely payments for gold deliveries going forward,” the miner said.

“As a result, the company’s operations are nearing normal capacity.”

With the progress that had been made in repayment of the outstanding amount, RioZim said shareholders could now freely trade in the company’s shares. The miner runs three gold mines, Cam & Motor, Dalny and Renco, and also runs a diamond mine as well as base metals division. In its last trading update for the third quarter, the miner saw gold production slump nine percent.. — New Ziana